Outsourcing
True or False? / All companies engage in outsourcing.
False
What is market segmentation?
Process of dividing the market into subgroups based on defined attributes
Who introduced the forcefield analysis tool? (Full name)
Kurt Lewin
What is outsourcing?
A practice used by different companies to reduce cost by transferring portions of work to outside suppliers rather than doing them internally.
three types of factors in segmentation, and 3 examples for each
Demographics: Age Gender Marital status Income group Social class Education Profession Religion Language
Psychographic: Status Values Cultures Interests Politics Causes/beliefs Buying habits Decision factors
Geographic:
Location: Urban Rural cosmopolitan or closed Multicultural Island low/uplands
Climate: Desert Tropical four-season seasonal rain humidity
In the force field analysis model, what is the name given to the force that causes resistance to change
restraining forces
Name 1 advantage of outsourcing
Reduction of operating costs
NOT: Loss of jobs, Customer resistance, Reduction in managerial control
One advantage + one disadvantage of market segmentation
Advantages:
- identifies gaps in the market
- better focus for the business
- cater to customers better
Disadvantages:
- high costs for R&D, promotions
- need for product variations for each market segmentation, heavy investment
- difficulty in distribution
Name at least 2 constraints to change
Cost
Resistance to change
Public opinions
Cultural barriers
What are limitations of outsourcing
Quality problems
Name at 3 Reasons for market segmentation
- better understanding of customers
- growth opportunities
- support for product differentiation
Reasons for why there is resistance to change (name at least 3)
Self interest
Low tolerance of change
Misinformation
Misinterpretation
Ambivalence
Accounting and Manufacturing
NOT:Sales, Strategic planning
what does D.A.M.A.S stand for?
Differentiated - each segment must be unique
Actionable - be able to address the needs of each segement
Measurable - size and purchasing power must be quantifiable
Accessible - products/services must be able to reach customers in a cost-effective way
Substantial - each market segment must be arge enough to generate profits
Name at least 3/6 change approaches to deal with resistance to change
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-option
Explicit and implicit coercion